S&P Affirms Var Household Home Equity Loan Trust Rtgs.

Business Editors

NEW YORK--(BUSINESS WIRE)--Standard & Poor's

Nov. 20, 2002--Standard & Poor's Ratings Services affirmed its ratings on five classes from four series issued by Household Home Equity Loan Trust (see list).

Approximately $3.22 billion in certificates

The affirmations are based on current credit support percentages that are sufficient to support their respective ratings. Credit support is provided by a combination of excess interest and overcollateralization. In addition to this, series 2002-2 and 2002-3 have support from bond insurance policies. MBIA Insurance Corp. ('AAA') provides the insurance policy on series 2002-2 while the insurance policy on series 2002-3 is provided by AMBAC Assurance Corp. ('AAA').

The overall performance of these pools has been very good, with historically low realized loss levels. Cumulative realized losses in non-bond insured transactions currently range from five to 58 basis points of their original pool balances. In addition to this, excess interest has outpaced losses in each of the past six months.

The underlying collateral for these transactions are mostly fixed- and declining-rate, first-lien, 30-year mortgage loans on one to four family homes. Declining rate loans are designed to reward borrowers for establishing a timely payment history. If borrowers have not made any late payments, then the interest rate on the loan will be reduced on the third, fourth, and fifth anniversary of origination. Each interest rate reduction is typically either 25 or 50 basis points, but may be higher.

    RATINGS AFFIRMED

    Household Home Equity Loan Trust

Series         Class        Rating
2001-2         A            AAA
2002-1         A            AAA
2002-1         M            AA
2002-2         Notes        AAA
2002-3         Notes        AAA